The social media giant, Facebook, is looking to make money transfers faster by developing a completely new stablecoin. Facebook received a huge setback in the blockchain market after it was rumored that the social media website shared information of its users without their permission. Although this has not been proven entirely and is still under the scanner, the share prices of Facebook saw a massive downfall during the last phase of 2018. This is one of the biggest reasons why the decision of developing a stable coin was taken
The reasons behind Facebook’s stable coin
According to reports from Bloomberg, it is being speculated that Facebook’s first course of action will be to let the Indian users transfer money through the cryptocurrency that will be developed. This will be applicable both for Facebook and WhatsApp. The money transfer will take place through a dollar-pegged cryptocurrency. The Indian users were troubled the most because of the information-sharing scandal and it was proven to a certain extent that the information of the users was indeed shared by the social media website. With more than 200 million monthly users alone from India, it is believed that the stable coin that will be developed by Facebook will be more effective in India and in Asia than in other countries.
However, that is not the only area of concern for the social media giant. They have also identified that the Indian market has one of the world’s largest remittances because migrants send more than $70 billion per year back to their home. This data was presented by the World Bank in 2017. So, it goes to show what a huge market India holds when it comes to using WhatsApp and Facebook; so much so that crypto experts are suggesting that the investors should use the Qprofit System to calculate the ups and downs of Facebook’s shares and also review the stablecoin that will soon be launched in the market.
Stablecoin work in progress
The news about Facebook’s stablecoin broke out towards the end of 2018. However, the plan of action already started way back in May. Facebook already started its own blockchain team to explore the various benefits of this technology. Top experts were hired to make sure that the stablecoin that is being planned will be safe and secure from all ends. This also increased the need to have marketing, software engineering, and data science teams that would help come up with the ultimate solution of making money transfer easier via Facebook, but keeping in mind that no details of the user will be compromised.
If the words of the experts turn out to be true, then the stablecoin that Facebook is developing could fast become the most used crypto product in the market. With the Indian market looking to grab the opportunity that the crypto market present, it will be time to see how much the stablecoin is able to flourish after the government gives a green signal to this cryptocurrency.